With the new year well underway, now is a good time to recap the fundamentals of apprenticeship funding in England.
Although the system has evolved with annual updates, the fundamental structure has remained broadly consistent since the major reforms introduced in 2018.
This blog offers a clear, simple recap of how funding works today, drawing on the most recent 2025–2026 Government guidance to reaffirm what employers and apprentices need to know.
The Foundation of Apprenticeship Funding
Apprenticeship funding is built around a set of rules published each year by the Department for Education. While details are updated annually, the overarching framework has remained stable since 2018:
Government and employers share the cost of apprenticeship training.
Each apprenticeship standard has a maximum funding band that sets the cap for funding.
Funding can only be used for eligible training and assessment activity.
These same principles are confirmed once again in the 2025–2026 funding rules, which apply to apprenticeships starting between 1 August 2025 and 31 July 2026.
Levy-Paying Employers – A Quick Reminder
Employers with an annual payroll above £3 million pay into the Apprenticeship Levy, and they access these funds through their Apprenticeship Service account. These funds can be used to pay for apprenticeship training and end‑point assessment — a system that has operated consistently since 2018. Unused levy funds continue to expire after 24 months.
Non‑Levy Employers – Co‑Investment Still Applies
For smaller organisations that do not pay the levy, the co‑investment model remains unchanged:
Employers contribute 5% of the training cost.
The Government funds the remaining 95%.
#TeamLinden | #Apprenticeships
Share this post: